I have long been a supporter of employer-based incentives for public transit (often
called “tax-free transit benefit” or “tax-free transit passes”). This is one of
the "Win-Win Transportation Solutions" (http://www.vtpi.org/winwin.pdf),
which are market-based reforms that provide multiple economic, social and
environmental benefits.

There is now a promising opportunity to have this policy established in Canada’s tax
code, and your support for this provision could be very influential. I
encourage you to send a letter to Federal Finance Minister Jim Flaherty and
Federal Minister of Transport Lawrence Cannon. Templates are posted at www.vtpi.org/TT_letter.htm (HTM
format) and www.vtpi.org/TT_letter.doc
(MS Word format).

US experience summarized in a National Academy of Science study (Analyzing
the Effectiveness of Commuter Benefit Programs, TCRP Report 107, http://onlinepubs.trb.org/onlinepubs/tcrp/tcrp_rpt_107.pdf
) reported that transit benefits typically cause transit use to increase by
approximately 25%, and sometimes by 100% or more. Tax-free transit benefits
began in the US
with 1984 legislation, when the benefit was limited to $15 per month, and
subsequent changes have raised this to $115. Employers of all sizes and types
in the public, private and non-profit sectors participate. About 2 million US employees
now use the benefit. A similar policy was recently implemented in Great Britain.

Canada
now has the opportunity to establish a world-leading, multi-dimensional transit
incentive strategy, with the employer-provided incentive a highly
cost-effective element. The transit benefit would complement the annual federal
tax credit now available to Canadian transit riders. Employer-based incentives
target auto commuters at the worksite, and are “seen” every month, not just
when the annual tax return is filed. Transit benefits encourage all commuters
to try and use transit. Experience shows many non-transit riders become occasional
riders, and occasional riders become more regular users. Employers as well as
employees enjoy tax savings from the transit benefit; this means the transit
benefit also captures employer support in the promotion of transit use, which
is very potent.

There is a very good possibility that the 2008 Budget will include this
measure, if we can continue to demonstrate broad public support. In response to
a request from the House of Common’s Finance Committee, which received written
testimony on this topic in August, oral testimony was provided earlier this
month. Interest is strong within the Government as well as with MP’s. The Canadian Urban Transport Association (CUTA) is
lobbying for it (www.newswire.ca/en/releases/archive/November2007/27/c4789.html
), as is Al Cormier, a former CUTA CEO, and Richard Oram,
founder of Commuter Check (www.commutercheck.com).

WHAT YOU CAN DO
Please send letters to the Finance Minister, The Honourable
Jim Flaherty, and to the Minister of Transport, the Honourable
Lawrence Cannon, asking them to implement this policy change. A template is
posted at www.vtpi.org/TT_letter.doc
(MS Word format) or www.vtpi.org/TT_letter.htm
(HTM format). Sending letters on your organization's letterhead is
especially valuable. You can simply print the letter as is and sign and mail
one to each Minister, or make modifications to reflect your own knowledge and
feelings about this issue, who your organization represents, etc.
Personalizing will make it even more effective.

Please note -- it is very important that Al Cormier receive a copy of your
letter(s), so that we can be sure all appropriate government officials see
them. Thus, please forward your letters to Al Cormier by fax to 905-858-9291 or
by e-mail to alcormier2@sympatico.ca
. If your letterhead will not appear electronically, please use
fax.

Please contact me (250-360-1560 or litman@vtpi.org), or Richard Oram (201-280-8444 or Richard@enviro-urban.org)
if you have any questions or comments. Thank you!